BitFuFu Stock Surges Pre-Market On Cost-Efficient Bitcoin Mining Expansion: Retail Sentiment Powers Up
By Stocktwits Inc | First Published Dec 11, 2024, 7:23 PM ISTThe newly leased facilities, offering 22 MW and 11 MW capacity, brings BitFuFu’s total operational capacity to 100 MW.
BitFuFu shares climbed 3% in premarket trading Wednesday after the Bitcoin mining company unveiled plans to expand its U.S. mining capacity under a 10-year lease agreement.
The deal covers two facilities with a combined capacity of 33 megawatts (MW), is the next step in the company’s transition from an asset-light strategy to a hybrid infrastructure approach, according to the company.
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"Given our long-term bullish outlook on Bitcoin, we have been focused on finding the optimal mix between a pure asset-light and asset heavy strategy,” said CEO and chairman of BitFuFu, Leo Lu, in a statement.
The newly leased facilities, offering 22 MW and 11 MW capacity, are poised to contribute up to 2 exahashes per second (EH/s) of mining capacity.
Moreover, the average power cost for these facilities is projected at a competitive $0.042 per kilowatt-hour. BitFuFu has operated at these sites for a year, ensuring their operational reliability and cost efficiency.
This move is part of the company’s broader ambition to scale its mining capacity to 1 gigawatt (GW) by the end of 2026. With the new facilities, BitFuFu's total operational capacity now exceeds 110 MW.
Retail sentiment around the stock improved to ‘bullish’ (58/100) from ‘neutral’ a week ago, along with an uptick in message volumes to ‘high’.
BitFuFu reported holding 1,643 Bitcoin valued at approximately $163 million, including 84 Bitcoin mined from its own operations in Nov. 2024.
Despite Bitcoin’s gains, BitFuFu stock has underperformed its peers, posting a 14% decline year-to-date, which has raised concerns among investors.
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